So how do you know how much you are on the hook for as we bail out Wall Street, combat the housing crisis and deal with rampant unemployment? It depends on which figures you use.

When we consider that there were 156.3 million tax filers in 2008, that amounts to just over $9,000 per tax filer. Please note that this figure is double what the number is when dividing by the total U.S. population.

While that sounds like a lot, understand that 2008 was a record year for U.S. tax filings as there were added incentives to file for people who normally do not file a return. Remember the economic stimulus payments? Before the stimulus, there were only 136.1 million tax filers in 2006.

A substantial number of tax filers actually pay no tax. This is due to standard deductions and a slew of tax credits, many of which are refundable. It is a fact that the number of tax filers who owe no tax has been rising rapidly over the last several years, a number that many economists find unsustainable in the long run.

So exactly how many Americans actually pay income taxes? The number of Americans not owing income taxes has been rising rapidly, and according to many could reach even higher numbers over the next couple of years. One of those voices is Tax Foundation President Scott Hodge.

By 2012, if President Obama’s proposals on taxes, health care and climate change become law, families earning up to $109,000 will, as a group, be receiving more in federal spending than they pay in federal tax.

It is important to note that the portion of tax filers who do not owe has been rising rapidly through multiple White House administrations.

A recent CNN Money article states that 47% of households will owe no tax in 2009. That means that an estimated 80 million households will be responsible for the $1.42 trillion budget deficit. That comes out to $17,500 per household that actually pays tax. And yes, this is in addition to what we already owe from previous deficits.

So what does that mean for each of us? It means that we need to understand that promises by the federal government to take care of us in our old age sound good, but we need to prepare for life without government assistance. The expected shortages in Social Security are well known. Therefore it is our responsibility to live below our means, make intelligent purchases, and save and invest for the future.

The class, along with the rest of the Ready to Rent workshops, will be held at the South Wilmington Street Center (see below for address).  The credit class will be held Wednesday, July 29, at 9:00 am.

The workshop will introduce you to the factors that determine your credit score and address several myths about what can improve and what can damage your credit.  Come learn why your credit is important, and how you can improve your score as much as possible.

Time:

Wednesday, July 29, 2009
9:00 a.m. to 12:00 p.m.

Location:

For more information and to register for the class, contact Jimmie Watson with the Wake County Supportive Housing Program at 919-856-5710.

Credit Scores Ignore Trade-Ins and Down Payments

Imagine making that next vehicle purchase. You know that a new vehicle will likely cost $20,000 or more. Putting a large down payment has many positive results:

• Reduce total finance charges
• Gain possible lower interest rate
• Reduce repayment term
• Reduce monthly payment amount
• Prevent negative equity (upside-down) situation

While most of these benefits tend to be true in any situation, there is a better way to put money down to reduce the overall borrowing costs.

Large First Payment Instead of Down Payment

When you borrow money, the original loan balance is recorded on your credit reports. As you pay down the balance, your credit score tends to improve because your overall debt to original balance ratio is lower.

By holding onto your cash to borrow the maximum amount, a higher initial loan balance is reported to the credit bureaus. Then you can make a principal payment a day or so after your loan is originated to pay down the balance. The key here is that you MUST designate that the payment be put towards principal only. Otherwise, the lender will likely apply it to future interest costs rather than actually reducing your borrowing costs.

You may do this by telling the bank or credit union to apply your extra payment toward the principal. If sending a check for an extra payment, you may write in “Principal Only Payment” in the memo line of your check.

The result is that you actually get credit (pun intended) for the extra payment, whereas a down payment would be completely ignored on your credit report. It may be possible to see a quicker boost to your credit scores due to a more rapid repayment of your debt.

Sometimes it is better to put money down in order to get a lower interest rate. This is often true if you have limited or poor credit.

However, if you are applying directly with your bank or credit union, then you already would know if you qualify for their lowest published rate regardless of the down payment. You find this out simply by applying for the maximum amount.

In the end, there is not a huge difference in how you put additional money toward your major purchase. By making a large initial payment instead of a down payment, then at least the credit bureaus can see the money that you paid.

Instead of repeatedly being denied decent housing because of negative credit marks in the past, you can get back on track to safe and affordable housing. The Ready to Rent program provides the following benefits for participants:

• Learn tenant rights and responsibilities
• Learn landlord rights and responsibilities
• Find out how to fix your own bad credit
• Get referrals for affordable housing

If you have had a history of credit problems or evictions, you might be able to get back on track with a little help.

Time:

1:00 p.m. to 4:00 p.m.

Location:

The 3 hour credit class will be provided by Vision Credit Education. Addition instruction focuses on budget and saving as well as on rental basics. To register, call Sharon Gibson with the Wake County Supportive Housing Program at 919-231-5957.

Several guests will be featured as a part of the 1-day class. Vision Credit will be providing a segment in cooperation with Fiscal Progress that is designed to take the mystery out of the homebuying process.

Freddie Mac designed the Get the Facts! curriculum to help ease confusion that often accompanies the various steps of buying a home. This brief presentation will be followed by a question and answer session.

The Get the Facts! seminar answers many questions often posed by first-time homebuyers. In addition,  many of the myths often circulating in the community are debunked. We will field questions that participants have and will make recommendations based on their unique situations.

If you or someone you know is thinking about buying a home, this could be a good course to attend prior to making a purchase. It is also recommended for previous homeowners that may have faced foreclosure or other serious action.

Date and Time:

Saturday, June 6, 2009 from 9:00 a.m. to 5:00 p.m.

Location:

To register, contact Tarin Washington with The Women’s Center at 919-968-4610.

The Ready to Rent workshop series is a project of the Wake County Supportive Housing Program (SHoP). By partnering with nonprofit organizations such as Fiscal Progress, Vision Credit Education and the Family Resource Center of Raleigh, SHoP is able to bring in financial experts to teach the financial skills needed for those having trouble gaining rental approval.

Participants receive twelve hours of financial education needed to help put them in position to gain rental application approvals. This can especially helpful for tenants who have past evictions or collection balances related to previous apartment or housing rentals.

Find out how you may take control of your credit by preserving positive accounts and resolving negative items on your credit report. We will show you how to do your own credit repair for free without using outside companies.

Event Dates:

Saturdays, including April 4, 18, 25 and May 2

Times:

10:00 a.m. to 1:00 p.m.

Location:

To register, please contact Letha Williams with the Wake County Supportive Housing Program at 919-231-5953.

(Raleigh, NC) The Wake County Supportive Housing Program is conducting its next Ready to Rent workshop series at the Helen Wright Center for Women during the second week of April. The Supportive Housing Program is a division of Wake County Human Services.

Participants receive training on tenant rights and responsibilities, as well as on landlord responsibilities. Budgeting and saving are also encouraged to make sure that participants can meet all of their monthly obligations.

Vision Credit will provide the credit education portion of the class, which will occur on Wednesday, April 8. While participants may not be required to obtain a credit report in advance, it can be helpful. Find out what are the most important factors on your credit report that could be keeping you from gaining approval for an apartment rental application.

Time: 1:00 p.m. – 4:00 p.m.

Location:

Those who would like to attend should contact Letha Williams with the Wake County Supportive Housing Program at 919-231-5953.

Related Link:

Helen Wright Center for Women

The number of bank failures has skyrocketed in the midst of the economic crisis that has caused a global recession. Loan defaults and rising unemployment have battered the loan portfolios of banks, many of whom are unable to absorb the rising losses.

This list of bank failures released by the FDIC contains links that provide more information about how the FDIC is proceeding as receiver of each of these failed banks. You can find out more about how the process is progressing as well as whether any outside bank has absorbed part of the client base of the failed bank. Here is the list of bank failures since October 1, 2000:

(Raleigh, NC) The Capital Area Youth Workforce Council is holding its fifth annual youth summit for Wake and Johnston County youth. Programs are geared toward at-risk youth 14 to 21 years of age.

Time:

9:00 a.m. to 1:30 p.m.

Location:

The event begins at 9:00 a.m. and features four workshops throughout the day. These wiill include:

1. Money Management 101
2. Pregnancy Information and Prevention
3. First Impressions Job Interviewing
4. 411 on Local Employers

The opening session will feature Cy Young from Foxy 104.3 & 107.1 FM. While pre-registration ended on February 23, you should contact Jessica McLeod at 919-856-7005 to inquire about late registration.

For more information, download the Youth Summit Registration flyer.

Citigroup stock has been hammered in the past 2 years as investor became increasingly worried about the exposure to troubled mortgage-backed assets. Analysts had warned that many of these assets would drop in value as housing defaults increased. Indeed, the number of foreclosures has been especially worrisome for CItigroup and other large financial companies.

What this investment does is much more substantial than just a cash infusion. THe governemnt is also providing protection from future losses, of which Citigroup would only be liable for 10%. Citi would have to eat the first $29 billion of losses.

Investors became increasingly alarmed when Citigroup failed to gain Wachovia’s deposit base as it had previously announced. Instead, Wells Fargo submitted a competing plan that was ultimately favored by Wachovia.

Investor sentiment was mostly positive and initially lead to an immediate increase in shares on European markets. US futures were also up, signaling a possible boost to the stock price. The stock had dropped 87% for the year on news of growing loan losses.

For homeowners with mortgages held by Citigroup, this is good news. Some strings were attached to this agreement. One major requirement was that Citigroup will have to work with delinquent borrowers, which will include loan modifications. CItigroup is required to do more to help distressed homeowners avoid foreclosure.

Citigroup is also prohibited from issuing more than a 1% dividend over the next 3 years. The governent however will receive an 8% dividend for its investment.

This move should restore some confidence among investors while helping Citigroup stop the bleeding from mortgage loan losses. Whether the actions will be enough remain to be seen. At a minimum though, it appears that the government has made a decision to allow Citigroup to remain viable, which is unlike the fate of other financial institutions that were allowed to fail.